LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 2, 1997
TO: Honorable Fred M. Bosse, Chair IN RE: House Bill No. 3338
Committee on Land and Resource Management By: Hilbert
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB3338 ( Relating
to alternative pleading to condemn.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HB3338-As Introduced
Implementing the provisions of the bill would result in a
net impact of $0 to General Revenue Related Funds through the
biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
This bill would allow property owners to recover all expenses,
including reasonable and necessary attorney's fees, in cases
where it is found that the condemnor does not own an interest
in property it has claimed.
Methodolgy
The Department of Transportation anticipates that this bill
would affect the agency most often in certain inverse condemnation
situations.
The department estimates, based on recent experience,
that it would be required to pay attorney's fees and other expenses
in 10 inverse condemnation cases per year, each entailing approximately
200 hours of attorney time at $200 per hour. In addition to
attorney's fees, the department expects to pay to property owners
$15,000 in expenses per case. Such costs would result from
appraisal fees, expert witness fee, and other expenses. Each
case would therefore cost the department $55,000.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable
Savings/(Cost)
from State
Highway Fund
0006
1998 ($550,000)
1998 (550,000)
2000 (550,000)
2001 (550,000)
2002 (550,000)
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 0
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
This bill's cost to local governments would depend on the number
of inverse condemnation cases which would result in an entity
paying property owners for expenses. The cost per case to local
governments is expected to be similar to that estimated for
the Department of Transportation.
Source: Agencies: 302 Office of the Attorney General
304 Comptroller of Public Accounts
601 Department of Transportation
LBB Staff: JK ,BB ,TL